Reasons for Wage Gaps
Wage gaps are an issue when two working people earn different wages. Wage gaps can happen between equal or dramatically different jobs. Reasons for wage gaps depend on the company, the area and the skill of each individual worker. The United States government has attempted to close wage gaps with laws on wages but without regular intervention, wage gaps still exist.
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Gender
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In 1988, the Council of Economic Advisers reported that, despite laws introduced in 1976, women were still making less annually than men. The study discussed possible reasons but gender was used to excuse pay gaps since women began working in factories during World War II. Some possible reasons for the gender wage gaps are experience, different skill sets between genders and career choices of women compared to men.
Raising Families
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When married couples begin to raise children, one parent may elect to stay home with the children. Whether the at-home parent is mom or dad, the previous career is reset when time is taken for child rearing. Usually, whichever parent has the higher income or better health benefits is the parent who continues on the career path. This creates a wage gap at different stages of life; upon returning to the work world the stay-at-home parent may begin at a much lower wage than others of the same age bracket.
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Intangible Discrimination
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Since the Equal Pay Act of 1963, companies must by law pay men, women and minorities equal salaries for equal work. While some companies follow the law, others continue to find ways to avoid it. According to the National Committee on Pay Equity, women and minorities continue, as of 2011, to report a "glass ceiling," where men have more opportunity, therefore earning promotions and higher pay.
Difference in Skill
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Skill levels differ with each job and individual. Measuring the skill of the individual and the skill required for the job is honest reasoning behind wage gaps. A job which requires greater skill, organization and education is justified in paying higher than a job which requires little education or specific knowledge. Some companies fairly distribute salaries according to a scale of skills and abilities the employees exhibit.
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References
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